Overview LEASE AGREEMENT (PPA) One time Cost No Up-front Cost Zero or low Up-front Cost. Own the Solar System. Solar System owned by Wilkins

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1 Overview Since its establishment over 2 decades, Wilkins Engineering Limited has been instrumental in the solar industry in the field of designing, building and maintaining solar photovoltaic (PV) systems for a variety of sectors including Commercial, Industrial, Governmental, Educational and Nonprofit organizations. With our well-equipped technicians and contemporary technologies, we are in the position to manage your conversion to solar energy both economically and seamlessly. Solar for commercial enterprises usually employs the Grid-Connected system which are net metered. Net metering allows a customer to monitor the energy intake from the grid and energy fed into the grid. This system provides energy accountability. The high capital investment associated with solar system has been a bottle-neck for most businesses in our market but thanks to our wide range of financing options, businesses can now patronize solar without any financial burden. Our three (3) financial structures will be explained, how they work and vital considerations to be made prior to selecting one of the financing options for a solar project. CASH PURCHASE POWER PURCHASE AGREEMENT (PPA) LEASE One time Cost No Up-front Cost Zero or low Up-front Cost Own the Solar System Solar System owned by Wilkins Ownership of the system is transferred after lease payments are completed Progress payments during construction Payments per kwp Consumed Recurring Payment for Hardware lease Page 1

2 $/kwh Wilkins Financing Options Wilkins Solar provides financing options for solar systems at little or no up-front cost to our customers. Options include Cash purchases, power purchase agreements (PPAs) and solar leases that minimize or eliminate the cost of ownership. CASH PURCHASING Direct purchasing of a solar system is the simplest financing option which attracts maximum benefit of the solar system. Even though solar systems come with a high capital investment, customers in this category get to appreciate the maximum benefit the solar system comes with, this includes energy savings and direct incentives. Why Cash Purchase? Huge energy savings from solar system. Third party interest rates and expenses are avoided. It allows for maximum energy savings and tax incentives. It allows for ownership of the solar system, hedges one against hikes in electricity prices. Comparing solar Cost/kWh to Utility Average $/kwh(utility) Average $/kwh(solar) Years Page 2

3 Vital Considerations Customers should know that cash purchasing allows for total ownership of the solar system, notwithstanding, the responsibility and cost of maintenance is being catered for by the customer. It is worth exploring cash purchases if total savings are your priority concern. However, if you prefer not to bear the capital cost of installing, operating and maintaining a solar project, we advise a PPA or a lease option. POWER PURCHASE AGREEMENT (PPA) With solar PPAs, Wilkins will finance, build, operate, and maintain the solar energy systems, enabling an installation at your site with no up-front capital expenditure. Instead of purchasing solar equipment, you purchase solar electricity, as it is generated, at a competitive rate. The host on the other hand ought to provide available space: roof, land, parking lot for the installation. We must note that the PPA provider assumes ownership for the solar system; nevertheless, ownership can be transferred to the host after a period based on agreed terms. Why a PPA with Wilkins? Wilkins is not only the PPA provider but also the engineer and installer. Wilkins will ensure that the interests of the system installation and the financing of that system are in complete alignment. Wilkins owns the system a major enticement for our certified technical team to design, build, and maintain the most productive system possible. Benefits of PPA Reduced utility bills Hedge against rising and volatile energy costs Zero operations and maintenance expenses. We will operate and maintain the system with our inhouse technical team Free up cash for core business investments No up-front cost Page 3

4 Vital Considerations Customers should know that the PPA provides financing to producing solar energy without owning, operating and maintaining of solar system. This burden now lies on the PPA provider. Customers are charged per kwh consumed. Contract agreement and a thorough credit review is agreed on for a period of time. This can be renewed after the time elapses, contract can be abrogated which comes with solar system removal or Solar system purchased at a reduced price by customer. SOLAR LEASE FINANCING This type of financing comes with little or no upfront cost or capital investment. The solar system is leased to the customer with a spread of the capital investment over a period of time (years). This system provides the usage of the solar system in exchange of monthly lease payments. The customer will concurrently benefit from a clean and cheap energy from the solar system. After the elapsing of the leasing period (mostly 3-5 years), the customer now claims full ownership of the solar system. Benefits of lease financing Little or no upfront cost Flexibility in payment of cost of solar system Hedge against hikes in electricity prices Reliable energy for business Page 4

5 Vital Considerations Note that the PPA system as well as the Lease system hold some similarities. However the major difference amongst the two is that, with the PPA, customers pay for the kwh used whereas the lease option allows for monthly payment of the upfront cost over a period of time. Customers are encouraged to opt for the financing option that suits their financing abilities. Wilkins Engineering will be instrumental in helping you achieve energy independency by providing clean and cheap energy via these financing options. Page 5

6 COMMERCIAL SOLAR PROJECTS GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit) 7 Volta Street Location: Airport, Accra Year: 2016 System size: 16.64kWp Module: Jinko Solar Inverter: SMA Anticipated Annual Energy Output: 33,580kilowatt-hours (kwh) G.A Sarpong &Co law firm Kanfia Street Asylum Location: Circle, Accra Year: 2017 System size: 15kWp Module: Jinko Inverter: Opti-Solar Anticipated Annual Energy Output: 30,295 kilowatt-hours (kwh) Page 6

7 Royal Nick Hotel Lane 6, Tema (On- going project) Location: Tema Year: 2017 System size: 400kWp Module: Jinko Inverter: SMA Anticipated Annual Energy Output: 657,000kWh Ministry of Energy Location: Ministries, Accra Year: 2003 System size: 50kWp Module: Isofoton Inverter: SMA Anticipated Annual Energy Output: 82,125 kilowatt-hours (kwh) Page 7